People enrolled in both Social Security and Medicare have their premiums automatically deducted from their monthly check.
If you receive Medicare health insurance benefits and Social Security retirement benefits at the same time, you can have your Medicare premiums automatically deducted from your Social Security check each month. This can save a lot of time and energy, as you won’t have to worry about paying your premiums manually. This option is available for every part of Medicare, including private plans like Medicare Advantage and Medicare Part D.
This article explains everything you need to know to understand how much will be deducted from your Social Security benefits.
How do I know if I will have money taken out of my Social Security check?
If you receive Social Security retirement benefits, your Medicare benefits will be deducted automatically. This means that you do not have to do anything to make this happen – it will be automatic when you enroll in Medicare.
If you sign up for Original Medicare during your Initial Enrollment Period (IEP) and already receive Social Security retirement benefits, you should not expect to receive a bill for your premiums. Instead, your Social Security benefit will be smaller, since the money is taken from there.
If you want to find out for sure whether this applies to you, your best bet is to contact the Social Security Administration (SSA). They will look up your current status to determine whether payments will be taken out automatically.
How much is taken out, exactly?
There is no standard amount that is taken out of your Social Security check when you sign up for Medicare. Instead, the amount deducted depends on several factors. Each part of Medicare has a different cost. On top of this, Part C and Part D are offered by private plans, which means their monthly premiums vary even more.
Although there are standard monthly premiums for Part A and Part B, the amount changes slightly each year. There are also additional costs that you may have to pay depending on your income level. We discuss these in more detail below.
To find out how much will be taken from your check, you need to refer to the specific parts of Medicare.
How much is deducted from Social Security for Medicare Part A?
For most people, Medicare Part A hospital insurance is premium-free. This doesn’t mean it is actually free, because you still have to pay your deductible, co-insurance, and other out-of-pocket costs. However, you will have no monthly premium fees if you qualify.
You are eligible to receive premium-free Part A coverage at age 65 if:
- You or your spouse paid Medicare taxes for ten years or longer
- You already receive Social Security retirement benefits or Railroad Retirement Board benefits
- You are eligible for these benefits but haven’t yet received them
- You or your spouse had Medicare-covered employment through the government
You can also get premium-free Part A if you are under 65. This will happen if you have received Social Security or Railroad Retirement Board disability benefits for over 24 months, or if you have end-stage renal disease (ESRD) and meet certain other qualifications.
Part A is paid for through income taxes that you pay for while you work. This is why the amount of years that you paid this tax is used to determine how much you pay in premiums.
How much do Part A premiums cost?
If you paid Medicare taxes for under 30 quarters, the Part A premium is $505 in 2024. Those who paid Medicare taxes for 30 to 39 quarters will pay $278 per month in premiums. Please note that, if you have to pay monthly Medicare premiums, you cannot qualify for Social Security benefits. In that case, you will not have to worry about money being taken out for now.
How much is deducted from Social Security for Medicare Part B?
There is no premium-free version of Medicare Part B. Although there are Medicare Savings Programs available for people who meet income and resource requirements. We explain them in detail here.
If you are enrolled in Part B and receive Social Security benefits, then your Medicare Part B premiums are deducted automatically. If you are enrolled in Part B but do not receive Social Security benefits, you have to pay your monthly premium online or by check.
The standard monthly premium for Part B is $174.40 in 2024. However, there may be an additional amount you pay each month depending on your income.
This additional fee is called the Income-Related Monthly Adjustment Amount (IRMAA). The amount varies depending on the income that you reported to the IRS on your most recent tax return. The table below shows the additional amount you'd owe for IRMAA at each income level.
Medicare Advantage premiums and Social Security benefits
Medicare Advantage, also known as Medicare Part C, is a type of insurance provided by private insurance companies that contract with Medicare. Private insurance companies manage the plans but have to work within guidelines provided by the federal government. They are only available to people who are eligible for Original Medicare.
Medicare Advantage premiums vary in price just like other private insurance plans. This means that there is no way to say how much you will pay without getting a quote. However, there are averages. In 2024, the average premium for a Medicare Advantage plan is around $19 per month, when you factor in the $0 plans. Taking those out of the equation to look only at MA plans with a monthly premium brings the average up to around $29.
To have your Medicare Advantage monthly premium deducted from your Social Security benefit, you have to contact the Social Security Administration. Otherwise, you will have to pay the premium directly to your insurance company.
How much is taken out for Part D drug plans?
Medicare Part D plans help pay for prescription drug costs. This coverage is not included with Original Medicare (Medicare Parts A and B). However, some Medicare Advantage plans also provide drug coverage. If you join a Medicare Advantage Prescription Drug plan (MA-PD), you cannot also join a standalone Part D plan.
As with Medicare Advantage plans, Part D plans are sold by private insurance companies. This means that their costs will vary, just like Part C plans. However, you may also owe the Income-Related Monthly Adjustment Amount for your Part D plan. The IRMAA table above includes the Part D surcharge at each income bracket.
This amount, as well as your premium itself, can be deducted from your Social Security benefit. Contact the Social Security Administration to set this up.
Key things to remember about Social Security and Medicare
For most people, finding out how much will be taken out of your Social Security check is very easy. If you have Original Medicare and collect retirement benefits, then the process is automatic. The amount deducted is your monthly Part B premium ($174.40 or higher in 2024). You likely won't have to pay the Part A premium if you qualify for retirement benefits.
The main thing to remember is that the process is not automatic if you have a Medicare Advantage or a Part D plan. You will have to call the Social Security Administration to arrange to have your premiums deducted from your monthly benefit. Make sure to check each month after you initiate the process since implementation is sometimes delayed.
And if you're looking for a Medicare plan, whether it's Part C, Part D, or Medigap, our Find a Plan tool makes it easy to compare costs and benefits. Just enter your zip code to start reviewing Medicare plans in your area.